Aug. 1 (Bloomberg) -- German stocks rose the most in three
weeks as European Central Bank President Mario Draghi reiterated
that interest rates will remain low for an extended period.

Metro AG rose the most in two months as Germany’s biggest
retailer reported second-quarter profit that beat analysts’
estimates. Bayerische Motoren Werke AG dropped after the world’s
biggest maker of luxury vehicles reported that profit decreased
8.8 percent in the second quarter.

The DAX Index added 1.6 percent to 8,410.73 at the close of
trading in Frankfurt. The equity benchmark climbed 4 percent
last month and has risen 9.3 percent from a low on June 24. The
broader HDAX Index also increased 1.6 percent today.

“The headlines around Metro have been good as the German
economy shows signs of doing quite well,” Raimund Saxinger, a
fund manager at Frankfurt-Trust Investment GmbH, which oversees
about $22 billion, said in a telephone interview.

The ECB left its benchmark interest rate unchanged at a
record low of 0.5 percent today, as predicted by all but one of
63 economist estimates in a Bloomberg News survey. In a press
conference following the decision, Draghi said that interest
rates will not increase any time soon.

Metro jumped 8.5 percent to 28.11 euros after posting
second-quarter earnings before interest, taxes and special items
of 276 million euros ($365 million). Analysts on average had
estimated 269.2 million euros.

Siemens, Bayer

Siemens AG rose 2.6 percent to 84.45 euros as Deutsche Bank
AG upgraded Europe’s biggest engineering company to buy from
hold, saying that the new chief executive officer can focus the
company around its core businesses of automation, power
generation and health care. The brokerage increased its target
price on the shares to 95 euros from 75 euros.

Bayer AG climbed 2.4 percent to 89.43 euros as JPMorgan
Chase & Co. lifted its price estimate on the drugmaker’s shares
to 100 euros from 95 euros. The brokerage increased its sales
forecasts for Bayer’s five new medicines, which include Xarelto
and Eylea.

BMW dropped 0.8 percent to 73.01 euros as the automaker
said Ebit declined to 2.07 billion euros because of higher
investment in new models including its first electric car.
Analysts on average had forecast 2.08 billion euros. The company
also said that demand will not recover in Europe before the
second half of 2014.

Draegerwerk AG, which makes medical equipment, retreated 4
percent to 97 euros after reporting second-quarter Ebit of 39.4
million euros. That missed the average analyst estimate of 43.7
million euros.

The volume of shares changing hands in DAX-listed companies
was 2.6 percent greater than the average of the last 30 days,
according to data compiled by Bloomberg.